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File #: Int 1964-2020    Version: Name: Authorize adoption by resolution of an interest rate for nonpayment of taxes on real property with an assessed value over two hundred fifty thousand dollars in FY'21 for certain property owners adversely affected by COVID-19.
Type: Introduction Status: Enacted
Committee: Committee on Finance
On agenda: 6/18/2020
Enactment date: 7/7/2020 Law number: 2020/062
Title: A Local Law to authorize adoption by resolution of an interest rate for nonpayment of taxes on real property with an assessed value over two hundred fifty thousand dollars in fiscal year 2021 for certain property owners adversely affected by COVID-19
Sponsors: Margaret S. Chin, Adrienne E. Adams, Paul A. Vallone
Council Member Sponsors: 3
Summary: This bill would authorize the City Council to pass a resolution adopting a 7.5 percent interest rate on the late payment of fiscal year 2021 property taxes due on July 1, 2020 for the period between July 1, 2020 and October 15, 2020 for certain real property owners. To be eligible, property owners would be required to demonstrate to the Department of Finance (DOF) by no later than September 30, 2020 that such property owner has been adversely affected by COVID-19 and either: (a) owns class 4 real property with an assessed value of more than $250,000 and less than $750,000; or (b) owns real property with an assessed value over $250,000 where at least 50 percent of the property is used for residential rental dwellings and contains no more than 30 rental dwelling units, of which at least 50 percent are rent regulated accommodations. For the first category, adversely affected by COVID-19 means the income of the property owner declined between March 7, 2020 and June 30, 2020, by at least 50 percent as compared to the corresponding period in the previous calendar year, and for the second category that the income of the property owner declined between March 7, 2020 and June 30, 2020, by at least 25 percent as compared to the corresponding period in the previous calendar year. Additionally, DOF would be required to report to the Speaker of the Council no later than November 1, 2020 the number of properties for which the 7.5 percent interest rate was imposed pursuant to the provisions of this local law and the aggregate value of the real property tax liability of those properties.
Indexes: Report Required
Attachments: 1. Summary of Int. No. 1964-A, 2. Summary of Int. No. 1964, 3. Int. No. 1964, 4. Committee Report 6/10/20, 5. Hearing Testimony 6/10/20, 6. Hearing Testimony 6/10/20 (Con't), 7. Hearing Transcript 6/10/20, 8. June 18, 2020 - Stated Meeting Agenda with Links to Files, 9. Hearing Transcript - Stated Meeting 6-18-20, 10. Proposed Int. No. 1964-A - 6/24/20, 11. Committee Report 6/25/20, 12. Hearing Transcript 6/25/20, 13. Council Member Yeger - Proposed Amendments, 14. June 25, 2020 - Stated Meeting Agenda with Links to Files, 15. Hearing Transcript - Stated Meeting 6-25-20, 16. Int. No. 1964-A (FINAL), 17. Fiscal Impact Statement, 18. Mayor's Letter, 19. Local Law 62, 20. Minutes of the Stated Meeting - June 18, 2020, 21. Minutes of the Stated Meeting - June 25, 2020
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
7/7/2020AMargaret S. Chin City Council Recved from Mayor by Council  Action details Meeting details Not available
7/7/2020AMargaret S. Chin Mayor Signed Into Law by Mayor  Action details Meeting details Not available
7/7/2020AMargaret S. Chin Mayor Hearing Held by Mayor  Action details Meeting details Not available
6/25/2020AMargaret S. Chin City Council Sent to Mayor by Council  Action details Meeting details Not available
6/25/2020AMargaret S. Chin City Council Approved by CouncilPass Action details Meeting details Not available
6/25/2020*Margaret S. Chin Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
6/25/2020*Margaret S. Chin Committee on Finance Amendment Proposed by Comm  Action details Meeting details Not available
6/25/2020*Margaret S. Chin Committee on Finance Amended by Committee  Action details Meeting details Not available
6/25/2020AMargaret S. Chin Committee on Finance Approved by CommitteePass Action details Meeting details Not available
6/18/2020*Margaret S. Chin City Council Referred to Comm by Council  Action details Meeting details Not available
6/18/2020*Margaret S. Chin City Council Introduced by Council  Action details Meeting details Not available
6/10/2020*Margaret S. Chin Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
6/10/2020*Margaret S. Chin Committee on Finance P-C Item Laid Over by Comm  Action details Meeting details Not available

Int. No. 1964-A

 

By Council Members Chin, Adams and Vallone

 

A Local Law to authorize adoption by resolution of an interest rate for nonpayment of taxes on real property with an assessed value over two hundred fifty thousand dollars in fiscal year 2021 for certain property owners adversely affected by COVID-19

 

Be it enacted by the Council as follows:

 

Section 1.  Notwithstanding paragraph (ii) of subdivision (e) of section 11-224.1 of the administrative code of the city of New York, the council may by resolution adopt an interest rate of 7.5 percent to be charged for nonpayment of taxes, during the period between July 1, 2020 and October 15, 2020,  on real property due on July 1, 2020 for fiscal year 2021 for real property: (1) classified as class 4 pursuant to section 1802 of the real property tax law with an assessed value of more than $250,000 and less than $750,000; or (2) with an assessed value over $250,000 (i) where at least 50 percent of the property is used for residential rental dwellings; and (ii) which contains no more than 30 rental dwelling units of which at least 50 percent are rent regulated accommodations; provided that no later than September 30, 2020, the owner of such property submits documentation to the commissioner of finance demonstrating that such owner has been adversely affected by the COVID-19 pandemic; and provided further that nothing herein shall be construed to amend paragraph 6 of subdivision b of section 11-319 of such code.

§ 2. For the purposes of this local law, the following terms shall have the following meanings:

(a) “Adversely affected by the COVID-19 pandemic” means: (1) for real property described in subdivision one of section one of this local law, the income of the property owner from such real property declined, between March 7, 2020 and June 30, 2020, by at least 50 percent as compared to the corresponding period in the previous calendar year due to COVID-19;  and (2) for real property described in subdivision two of section one of this local law, the income of the property owner from such real property declined, between March 7, 2020 and June 30, 2020, by at least 25 percent as compared to the corresponding period in the previous calendar year due to COVID-19.

(b) “Owner” means a person who is liable for payment of the real property tax on the subject property.

(c) “Rent regulated accommodation” means a dwelling unit required by law or by an agreement with a governmental entity to be regulated  in accordance with the emergency tenant protection act of 1974, the rent stabilization law of 1969, the local emergency housing rent control act of 1962 .

§ 3. No later than November 1, 2020, the department of finance shall report to the speaker of the council the number of properties for which the 7.5 percent interest rate was imposed pursuant to the provisions of this local law and the aggregate value of the real property tax liability of those properties.

§ 4. This local law takes effect immediately and is retroactive to and deemed to have been in effect as of June 25, 2020, except that the council of the city of New York may take such measures as are necessary for the implementation of this local law, including the adoption of the resolution that is the subject of this local law, on or before such date.

NAB/RKC

LS #6347

6/17/2020 11:46pm